BT has completed the acquisition of local area networking firm SkyNet Systems, a move which the telco said will help it expand its IP communications service offerings.

SkyNet specialises in IP communications, wireless networks, content delivery and network security focused on the education, health, local government and media markets.

Tom Craig, director of BT Convergent Solutions, said that the takeover forms part of BT's strategy to extend its capability and market coverage in key technologies such as IP telephony, wireless networking and security.

Dave Carrington, founder and managing director of SkyNet, added that the acquisition would play to both firms' "mutual strengths".

SkyNet employs 59 people and generated operating profits of £1.5m on turnover of £21.7m for the year ended 31 March 2005. The company had net assets of £2.2m.